Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2012

Statements of Operations Information Other statements of operations information is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
(millions)
Other Revenues ⁽¹⁾	$	1		$	—		$	—		$	33
Production Expense
Lease Operating Expense	$	103		$	89		$	309		$	251
Production and Ad Valorem Taxes	31			38			112			108
Transportation and Gathering Expense	24			15			71			47
Total	$	158		$	142		$	492		$	406
Other Operating (Income) Expense, Net
Deepwater Gulf of Mexico Moratorium Expense ⁽²⁾	$	—		$	(1	)	$	—		$	18
Electricity Generation Expense ⁽¹⁾	—			—			—			26
Other, Net	(1		)	3			19			1
Total	$	(1	)	$	2		$	19		$	45
Other Non-Operating (Income) Expense, Net
Deferred Compensation (Income) Expense ⁽³⁾	$	7		$	(18	)	$	(1	)	$	(15	)
Interest Income	(1		)	(2		)	(1		)	(7		)
Other (Income) Expense, Net	(2		)	4			4			6
Total	$	4		$	(16	)	$	2		$	(16	)


⁽¹⁾	Other revenues consist primarily of electricity sales from the Machala power plant, located in Machala, Ecuador, through May 2011. Electricity generation expense includes all operating and non-operating expenses associated with the plant, including depreciation and changes in the allowance for doubtful accounts. In May 2011, we transferred our assets in Ecuador to the Ecuadorian government.


⁽²⁾	Amounts relate to rig stand-by expense incurred prior to receiving a permit to resume drilling activities in the deepwater Gulf of Mexico.


⁽³⁾	Amounts represent increases (decreases) in the fair value of shares of our common stock held in a rabbi trust.

Balance Sheet Information Other balance sheet information is as follows:



	September 30, 2012			December 31, 2011
(millions)
Accounts Receivable, Net
Commodity Sales	$	264		$	356
Joint Interest Billings	295			313
Other	136			123
Allowance for Doubtful Accounts	(9		)	(9		)
Total	$	686		$	783
Other Current Assets
Inventories, Current	$	88		$	78
Commodity Derivative Assets	35			10
Deferred Income Taxes, Net ⁽¹⁾	104			41
Probable Insurance Claims ⁽²⁾	39			15
Assets Held for Sale ⁽³⁾	73			—
Prepaid Expenses and Other Current Assets	83			36
Total	$	422		$	180
Other Noncurrent Assets
Equity Method Investments	$	363		$	329
Mutual Fund Investments	110			99
Commodity Derivative Assets	24			37
Other Assets, Noncurrent	128			83
Total	$	625		$	548
Other Current Liabilities
Production and Ad Valorem Taxes	$	117		$	121
Commodity Derivative Liabilities	16			76
Income Taxes Payable	209			127
Asset Retirement Obligations	41			33
Interest Payable	40			56
CONSOL Installment Payment ⁽⁴⁾	322			324
Current Portion of FPSO Lease Obligation	48			45
Liabilities Associated with Assets Held for Sale ⁽³⁾	34			—
Other	187			143
Total	$	1,014		$	925
Other Noncurrent Liabilities
Deferred Compensation Liabilities	$	237		$	222
Asset Retirement Obligations	279			344
Accrued Benefit Costs	88			88
Commodity Derivative Liabilities	5			7
Other	82			91
Total	$	691		$	752


⁽¹⁾	Increase from December 31, 2011 is due to reclassification of deferred income tax assets from long-term to short-term as certain foreign entities are estimated to begin utilizing net operating loss carryforwards in 2012 and 2013.


⁽²⁾	Amounts represent the costs incurred to date of the Leviathan-2 appraisal well and expected well abandonment costs in excess of the insurance deductible less insurance proceeds received to date. See Note 9. Asset Retirement Obligations.


⁽³⁾	Assets held for sale consists primarily of oil and gas properties and liabilities held for sale consists primarily of asset retirement obligations.


⁽⁴⁾	See Note 3. Acquisitions and Dispositions and Note 5. Debt.